As a former financial advisor and legal expert with over a decade of experience, I’ve seen my fair share of cases where investors have been misled or taken advantage of by unscrupulous advisors. The recent complaint against Columbus, Ohio-based advisor Abtin Bashirazami is a serious allegation that merits close attention from the investing public.
According to FINRA records, the complaint alleges that while employed at TransAmerica Financial Advisors, Mr. Bashirazami recommended a client “liquidate his 529 savings and use an inheritance to fund” an indexed universal life insurance policy. The client claims this recommendation was based on misrepresentations by the advisor. The pending complaint seeks damages of $241,666.58.
For investors, this case highlights several important considerations:
- Always carefully scrutinize any recommendation to liquidate existing investments, especially those intended for important goals like education savings
- Be wary of advisors who seem overly eager to put your money into complex products like indexed universal life insurance
- Don’t be afraid to ask questions and get a second opinion before making major financial decisions
It’s worth noting that this is not the first complaint against a TransAmerica advisor. According to a 2021 study, the firm has faced numerous complaints and regulatory actions in recent years related to alleged advisor misconduct. This underscores the importance of thoroughly vetting any financial professional before entrusting them with your hard-earned money.
The Advisor’s Background
So who is Abtin Bashirazami? According to his FINRA BrokerCheck report, he has only been in the securities industry for two years. He joined TransAmerica Financial Advisors in 2022 and is based out of their Columbus, Ohio office.
Prior to this complaint, Mr. Bashirazami had a clean record with no previous disclosures. He holds Series 6TO and 63 licenses and is registered to sell securities in eight states.
While everyone deserves a fair shake, a newer advisor like Mr. Bashirazami may not have the depth of experience needed to navigate complex financial situations. This could potentially lead to mistakes or oversights that harm clients. It’s a reminder to investors to look for seasoned professionals with a proven track record of serving clients ethically.
What the Rules Say
The allegations against Mr. Bashirazami implicate FINRA Rule 2020, which prohibits brokers from inducing investments “by means of any manipulative, deceptive or other fraudulent device or contrivance.” In plain English, this means advisors can’t use misrepresentations or false statements to convince clients to invest.
If the complaint is substantiated, Mr. Bashirazami could face serious consequences. Sanctions for violating Rule 2020 may include fines, suspensions, or even a permanent bar from the securities industry. He could also be held personally liable for the client’s financial damages in arbitration.
Lessons Learned
As someone who has built a career on trust and integrity, it pains me to see advisors accused of misleading the clients who depend on them. While everyone is entitled to a vigorous defense, complaints like this damage public confidence in the financial system we all rely on.
The lessons for investors are clear: Do your due diligence, ask tough questions, and if something doesn’t feel right, walk away. There are plenty of honest, highly competent financial advisors out there who put their client’s interests first.
As President Ronald Reagan famously said, “trust, but verify.” That sage advice is more relevant than ever in today’s complex financial world. By staying informed and engaged, investors can protect their nest egg and achieve their long-term goals.
It’s a sobering fact that 7% of financial advisors have a history of misconduct. But the vast majority are honest professionals who work tirelessly for their clients. The key is knowing how to find them and building a relationship of trust and transparency. Together, we can ensure a brighter financial future for all.
